Monro, Inc. (MNRO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Monro, Inc.

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Why is Monro, Inc. ?

Poor Management Efficiency with a low ROCE of 8.37%

The company has been able to generate a Return on Capital Employed (avg) of 8.37% signifying low profitability per unit of total capital (equity and debt)

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.24 times

Poor long term growth as Operating profit has grown by an annual rate -9.72% of over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 77.14 MM
CASH AND EQV(HY) Lowest at USD 15.38 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 76.45 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -10.92%, its profits have risen by 3.5% ; the PEG ratio of the company is 7
At the current price, the company has a high dividend yield of 631.8

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Monro, Inc. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Monro, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Monro, Inc.

-9.67%

-0.59

66.25%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.27%

EBIT Growth (5y)

-9.72%

EBIT to Interest (avg)

3.28

Debt to EBITDA (avg)

1.24

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

1.56

Tax Ratio

12.35%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

8.37%

ROE (avg)

5.72%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.92

EV to EBIT

19.13

EV to EBITDA

6.85

EV to Capital Employed

0.93

EV to Sales

0.57

PEG Ratio

6.97

Dividend Yield

631.78%

ROCE (Latest)

4.88%

ROE (Latest)

4.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 724.33

RAW MATERIAL COST(Y)

Fallen by -1.83% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 79.49 %

OPERATING PROFIT MARGIN(Q)

Highest at 9.99 %

PRE-TAX PROFIT(Q)

Highest at USD 10.02 MM

EPS(Q)

Highest at USD 0.34

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 77.14 MM

CASH AND EQV(HY)

Lowest at USD 15.38 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 76.45 times

Here's what is working for Monro, Inc.

Pre-Tax Profit

At USD 10.02 MM has Grown at 170.03%

over average net sales of the previous four periods of USD 3.71 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Interest Coverage Ratio

Highest at 724.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit Margin

Highest at 9.99 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 10.02 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

EPS

Highest at USD 0.34

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at 79.49 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -1.83% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Monro, Inc.

Operating Cash Flow

Lowest at USD 77.14 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 15.38 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 76.45 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio